A portfolio manager's ranking within a comparison universe may not provide a good measure of performance because
A)portfolio returns may not be calculated in the same way.
B)portfolio durations can vary across managers.
C)if managers follow a particular style or subgroup,portfolios may not be comparable.
D)both B and C.
E)all of the above.

Question

Quizplus · Accepted Answer

Portfolio durations and investment styles can vary significantly across managers, making it difficult to compare their performance. Therefore, a portfolio manager's ranking within a comparison universe may not be a good measure of performance. Additionally, portfolio returns may not be calculated in the same way, further complicating any performance comparison analysis. Thus, options B and C are correct.

A Portfolio Manager's Ranking Within a Comparison Universe May Not